**Stellantis Plans Affordable Ram 1500 Pickup to Meet US Demand**
Stellantis NV is exploring the introduction of a more affordable version of its Ram 1500 pickup truck in the US market. Chief Financial Officer Doug Ostermann indicated that there is still demand for a lower-end trim following the discontinuation of the stripped-down “Ram Classic” last year. He mentioned at a Wolfe Research conference that while the new pickup’s lower-end model is necessary to fill the market gap, it will not be available “immediately.” This move would reverse a decision made by former CEO Carlos Tavares to halt production of the entry-level model.
### Market Context and Production Changes
– Stellantis, known for its Jeep SUVs and Dodge muscle cars, previously laid off approximately 1,100 union workers at the Michigan factory that produced the Ram Classic, shifting some production to Mexico.
– Ram’s US pickup sales, a significant profit source for the company, dropped by 16% last year, contributing to an overall vehicle delivery decline of 15% in 2024 and a significant earnings decrease.
– The company is actively working to regain market share in the US by implementing price cuts, increasing incentives, and addressing gaps in its product lineup, which had suffered from underinvestment during Tavares’s tenure.
### Strategic Adjustments Amid Tariff Concerns
Ostermann noted that Stellantis has been relocating additional parts supplies across the borders with Canada and Mexico to mitigate the potential impact of new tariffs. He previously indicated that the company could consider shifting some Ram production back to Detroit if tariffs are imposed.
Stellantis is currently in search of a new CEO following Tavares’s departure in December. The company has projected only modest profitability for this year, excluding the potential costs associated with new tariffs.
**Conclusion:** Will Stellantis successfully reintroduce an affordable Ram 1500 to capture the market demand?
**FAQ:**
**Q: Why did Stellantis stop producing the Ram Classic?**
A: Stellantis halted production of the Ram Classic last year as part of a decision by former CEO Carlos Tavares to discontinue the entry-level model, despite ongoing demand for affordable options in the US market.